Bungie Hit by Major Layoffs, Reportedly Gutting Destiny 2 Team

Hundreds of positions eliminated, including significant portions of the Destiny 2 and Marathon development teams, sparking widespread developer and community concern.

Jun 25, 2026
Industry & Business
Bungie Hit by Major Layoffs, Reportedly Gutting Destiny 2 Team

Bungie has undergone a significant reduction in force, impacting hundreds of employees and reportedly decimating the development team for its flagship title, Destiny 2. Sony and Bungie announced the layoffs, which also affected members of the upcoming Marathon project and external contractors. A WARN notice filed by the studio indicates 292 positions were eliminated at its Washington headquarters, a number that does not account for affected remote or external workers.

The scale of the layoffs has drawn sharp reactions from across the gaming industry and its player base. Developers have shared their experiences on social media, highlighting the widespread impact across various departments. The entire Destiny 2 sandbox team, cinematics organization, raid and dungeons team, and VFX team have reportedly been affected. Many long-time Bungie veterans, including test lead Dawn Vu, who was nearing 14 years of service on Destiny, were among those let go.

Former Bungie employees and industry observers have expressed shock and dismay, with some describing the situation as a "bloodbath" and a "gigantic squandering of talent." Ben Platnick, a former Bungie developer, lamented the loss of "generational talent," noting that many affected employees were veterans from the Halo era. The impact on Marathon, Bungie's upcoming extraction shooter, was also significant, with sound designers and other contributors reporting their departure.

In a statement, Herman Hulst, CEO of Sony's Studio Business Group, confirmed that "most of the Destiny team" and "some Marathon team members" were impacted. He reiterated Bungie's commitment to supporting Marathon and future projects. However, this assurance has done little to quell concerns among fans and industry professionals about the future of Bungie's development capabilities and the fate of its live-service games. Players have expressed concerns about the longevity of Destiny 2's servers, though reports suggest there are no current plans to shut them down, citing the example of Anthem's servers remaining active for seven years.

The timing of the layoffs, occurring on the same day Grand Theft Auto VI pre-orders began, has also been noted, though the impact of the Bungie reductions has become a dominant topic of discussion. The situation has reignited conversations about industry-wide layoff cycles and the precarious nature of game development employment. Reports have also surfaced regarding executive compensation following the Sony acquisition, with some commentators highlighting significant payouts to leadership contrasted with the widespread job losses.

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